Burgerizzr’s profits jump 355.5% by end of 2023 to SAR 12.3 mln

Shatirah House Restaurant Co. (Burgerizzr) revealed an increase in net profit at the end of 2023 to 12.3 million riyals, compared to 2.6 million riyals last year, by 355.5%. This came after today’s announcement of the annual financial results ending on December 31, 2023.

Operating profit reached 15.8 million riyals at the end of 2023, compared to 5.7 million riyals last year, a growth of 175.7%.

Total ownership rights (excluding non-controlling interests) amounted to 68.8 million riyals in the current year, compared to 56.9 million riyals last year, an increase of 20.9%.

Earnings per share in the current year reached 0.35 riyals, compared to 0.08 riyals last year.

Revenues: were increased as compared to last year by approximately 12.2%, mainly due to an increase in same-store sales and guest count. Several branches remained at 102 by the end of the current year compared to 105 branches at the end of the previous year. 2 new branches were added, and five branches were closed in this period.

The net profit of the Company for the Current year increased by SR 9.6 million, i.e. by 355.5%, as compared to the net profit of the previous year because:

Gross profit: increased by 24% mainly because of an increase in average sales per branch, and gross profit margin increased from 27.2% in the previous year to 30.1% in the current year. Food and labour costs decreased, and further depreciation, rent, utilities, and maintenance expenses increased.

Selling Expenses: Increased by SAR 7.5 million, or 20.3%, mainly due to increased delivery fees from the increased contribution of online channels, including aggregators.

Administrative Expenses: Decreased by SAR 1.1 million, or 4.3%, mainly due to a decrease in several employees’ and management’s efforts to utilise support resources more efficiently.

Others: Finance costs are increased by SR 30 thousand, loss on property disposal, equipment is increased by SR 728 thousand or 73.9% and other income is increased by SR 203 thousand.

The Repayment of Loans & Borrowings for the year ended 31 December 2022 is adjusted by SR 944K due to the reclassification of Finance cost paid from Repayment of Loans & Borrowings in the 31 December 2022 financial statements in line with the presentation of the current year. For more details, please refer to note 13 in the financial statements for the year ended 31 December 2023

As a result of the splitting of the nominal value per share from SR 10 per share to SR 1 per share during the year ended 31 December 2023, earnings per share for the previous year have been calculated retrospectively by adjusting the weighted average number of outstanding shares to reflect the effect of a share split from 3.5 million to 35 million shares.